One technical side of Bitcoin holding is that patience alone is not enough for you to hold successfully on the longer run, because at the end of the day, a source of income and an emergency funds is even more important than been patience because you might be forced to sell at a loss or even prematurely so as to address a pressing financial needs or an emergency like health issues, though patience is important, but patience alone is not enough to hold successfully, a source of income and an emergency funds are very much key in your ability to hold without tempering with it in the future.
It is necessary to have a steady source of income and set aside emergency funds before starting an investment. These are the foundational key things often called safety nets. Without them, even the most patient of all investors will face challenging situations where they might be temped to tamper their investment prematurely which might often lead to loss.
Of course, setting aside emergency funds when you are investing in bitcoin is good because it is what will help you sort out your unforeseen problems when they arise in the future, but it is not compulsory that a newbie must set aside emergency funds before he or she will start investing in bitcoin. A newbie can start bitcoin investment and accumulate bitcoin for one month without even setting aside emergency funds, but during his or her accumulation journey, he or she can build his or her emergency funds up to three months.
When it comes to investing in Bitcoin, a general rule is that one should build an emergency fund first, but if one wants to, one can start investing without building one at the beginning. However, after investing for a month or a few months, one should build an emergency fund so that they can be protected against any unforeseen circumstances in the future, because unforeseen circumstances can come in a person's life at any moment, and if the investor is not prepared to deal with those unforeseen circumstances at that time, then his holdings can be damaged, and we all know that if the Bitcoin holdings have to be sold suddenly, then the investor can suffer losses at that time. Because at that time the price of Bitcoin may be in a dumping situation, because Bitcoin is a volatile currency.
That is why, to invest in a highly volatile market like Bitcoin, investors should do proper research and develop a risk management strategy, You should use that money to invest in regular DCA, which you will not need in your daily life or any time, and keep all funds ready, emergency funds/reserve funds as well as all necessary funds. In this way, the more an investor invests in Bitcoin, the more secure and confident you can continue holding for Long time.
You guys are perfectly correct. Successful investment in Bitcoin requires patience to hold it for long term because profitability of Bitcoin is directly proportional to the magnitude of your asset and the time you hold the Bitcoin asset which can only be possible when there is a set aside emergency fund to take care of other basic needs because without having alternate source of income one may be tempted to sell the Bitcoin when it has not attain the expected performance. However, DCA method can be more helpful for a planned long time investment than lump sum because it enable one to invest a specific amount of money set aside for the investment in a targeted security and at regular intervals over a certain period of time, regardless of price, it also help investors to have low average cost per share and alsoenhance the reduction of the impact of volatility on the their portfolios.